Thursday, December 27, 2007

Interest rates are set in the bond markets...generally Interest rates drop when money floods out of the equities markets and into the bond markets...The reverse has been happening since 2003...The FED/commercial banks just follow along and raise/lower their rates accordingly...The last time around prime at commercial banks went down to around 4%...this time around rates have to go lower than that to refinance everything...(do it again and sustain the cycle)

The time before Last in 1993...The Federal Funds rate at the FED hit 2.92% while prime hit 6%

The volume required to sustain the system this last time was monumental...

This next time will require volume that has to make the last time (what we are in the tail end of) look insignificant.

Either this next time will be the final doomsday hyperinflationary blowout spike...or...the required volume to sustain a hyperinflationary blowout spike does not exist and the 1944 Bretton Woods global trade system will implode to oblivion...

The deflationary potential is so great that only massive inflation beyond what you all have experianced in your lives to date is needed to sustain inflation greater than previous inflation and the 1944 Bretton Woods global trade system any longer.

Governments are suppliers...the people of Zimbabwe are demanding the Government to supply them...In the beginning the Government decided that the white farmers were not needed and could be replaced with black farmers...Result? The farming sector collapsed and Zimbabwe transformed into a food importing zone from a food exporting zone...

The imported food was more expensive than the domestically produced goods causing a shortfall...Which was easily made up by going to commercial banks and requesting money to be manufactured to purchase it mark it up and sell it to the population...Now what do you use Zimbabwe dollars to buy when there is no food being exported out of Zimbabwe to buy anymore?

Nothing...So there is no need to do business with Zimbabwe...Except you could buy Government issued bonds...but since that basically the only thing that you can buy with your excess Zimbabwe dollars the rate on the bonds is rapidly dropping making them worthless...In order for the Zimbabwe Government to keep the population from starving to death they have to borrow more and more Zimbabwe dollars at higher and higher rates or exporting food to Zimbabwe will become unprofitable and the exporters will have to eventually stop sending food to Zimbabwe.

The same thing is being done in the USA basically but with manufactured goods from China and Japan...etc...But the US dollar since 1944 has had the added benefit of being the world trade medium of exchange...So everyone in the world needs US Dollars if they want to trade globally within the 1944 Bretton Woods global trade system...Zimbabwe does not enjoy that benefit and needs US dollars to purchase all that they do import...

And since Zimbabwe is producing Zimbabwe dollars quicker than the demand for them...The US dollar becomes constantly stronger while the Zimbabwe dollars become constantly weaker.

So when you go to work (If you work) how would you like your employer to start paying you -$10.00 an hour?

The negative rates fairy tale is just that...A fairy tale introduced into the population to give people something to grasp on to...to avoid having to grasp reality.

FED does not set rates...the bond markets do...The FED just follows along...If the FED had the power to set rates...They would have set them in 1913 and been done with it.

And yes the US Dollar could become strong again...All the USA needs to do is spend the next 40 or so years transforming back into a net exporting zone from a net importing zone...

But all the zones consuming US Imports would eventually want to enjoy being exporters as well...so then...If everyone desires to be a net exporter...Who is going to be a net importer? Who is going to be master and who is going to be slave?

"Pax Americana (Latin: "American Peace") is a term to describe the period of relative peace in the Western world since the end of World War II in 1945, coinciding with the dominant military and economic position of the United States. It places the United States in the military and diplomatic role of a modern-day Roman Empire (see Pax Romana), succeeding the British Empire."

"Pax Britannica (Latin for "the British Peace", modelled after Pax Romana) refers to a period of British imperialism after the 1805 Battle of Trafalgar, which led to a period of overseas British expansionism. The term is derived from, during this period, Europe being relatively peaceful and the British Empire controlling most key naval trade routes and enjoying unchallenged sea power. Britain dominated overseas markets and managed to influence and almost dominate Chinese markets after the Opium Wars.

The Empire's strength was guaranteed by dominance of a Europe lacking in strong nation states, and the presence of the Royal Navy on all of the world's oceans and seas. In 1905, the Royal Navy was superior in strength to the next two largest navies combined (known as the 'two power rule'). It provided services such as suppression of piracy and slavery. Britain also went beyond the seas and developed and funded a universal mail system.

This led to the spread of the English language, parliamentary democracy, technology, the British Imperial system of measures, and rules for commodity markets based on English common law."

"The Pax Romana, or Roman Peace, is a Latin term referring to the Empire in its glorified prime. From the end of the Republican civil wars, beginning with the accession of Augustus in 27 BC, this era in Roman history lasted until 180 AD and the death of Marcus Aurelius. Though the use of the word 'Peace' may be a bit misleading, this period refers mainly to the great Romanization of the western world. The Roman legal system which forms the basis of many western court systems today brought law and order to the provinces. The Legions patrolled the borders with success, and though there were still many foreign wars, the internal empire was free from major invasion, piracy or social disorder on any grand scale. The empire, wracked with civil war for the last century of the Republic, and for years following the Pax Romana, was largely free of large scale power disputes. Only the year 69 AD, the so-called 'Year of the Four Emperors', following the fall of Nero and the Julio-Claudian line, interrupted nearly 200 years of civil order. Even this was only a minor hiccup in comparison to other eras. The arts and architecture flourished as well, along with commerce and the economy."

The Roman Empire did not fall...It's Global now...

Free trade is a Roman invention...

As soon as the USA became dependant upon others in far away places to produce it's socks and underwear...

The USA as a soverign nation state was game over.

Consumers request commercial banks to manufacture money...Consumers then spend it into the economic system...

Governments issue bonds and borrow the money that the consumers spent into the economic system from the economic system...

Since the USA became the USA consumers have requested the commercial banks operating within the USA to manufacture around 45 Trillion dollars to spend into the economic system of the USA...and of that 45 Trillion dollars the US Government has "borrowed" around 8.8 Trillion dollars of it...with the majority of what it's "borrowed" spent back into the US economic system.

Even if the US Government began spending less than it took in and began paying off what it's borrowed from the economic system of the USA...the consumers would still owe 45 Trillion dollars reguardless.

Collateral? You are all collateral...either you slaves are productive (valuable/positive yielding)

or you are not...(valueless/negative yielding)

Please can I have some money?

Do you have any collateral?

Sure...

I have 100 slaves...er...employees that require an investment of $100 a day to sustain and they yield $200 a day revenue each...or $50,000 a week with a yield of $100,000 a week minus $50,000 for a $50,000 a week profit...

That's $200,000 a month...I have about $100,000 free to blow as I see fit after that...

But I want to live in a castle like a King and I need around 20 Million dollars to build it...think you can help me out?

Well...We'll work the numbers and look over the rest of the paperwork...I'm sure we can work something out...

Wednesday, December 26, 2007

More eye bleeding reading which you will soon forget but it is something to do I guess if you feel up to it...

The psychology bubble is the biggest bubble…A key indicator of the health of the economy is the DOW and NASDAQ…Not to you and me but to Joe Q public…

But Hyper…Hyperinflation will ignite with low interest rates…

The only way to ignite and maintain hyperinflation is by printing cash and distributing it in massive quantities…That is not how this system currently works…

The floating exchange rate debt backed by debt fractional reserve system has a maximum potential to inflate debt…

The previous system…the Bretton Woods Gold backed fractional reserve system also had a maximum potential…Gold was pegged at $35 an ounce so under the previous system as long as the FED had an ounce of gold for every $35 redeemed by whomever decided that they wanted to convert dollars into Gold then debt could keep expanding…

In the early 60’s the system began to collapse and the US government/Federal reserve closed the gold window in 1971 when they ran out of gold to back the debt inflation…

The new system, the floating exchange rate debt backed by debt fractional reserve system allowed further expansion of the debt supply by replacing the gold backing of the dollar with the dollar backing of the dollar…Debt backed by debt…

Now on to the maximum potential of the new system…

Since previously created debt is used as a basis for the creation of new debt the following are true logical statements whether you think so or not or can comprehend them or not…

Debt is money…when you borrow money from a financial institution it is created out of thin air with compound interest attached…Currently the reserve requirement for US banks is 3% which means for every $100 a bank has on deposit they can create out of thin air with compound interest attached $3,400 to lend out…The Commercial banks can borrow liquidity from the FEDERAL RESERVE to expand their fractional reserve, so basically the Banks have an unlimited amount of money which is debt created out of thin air with compound interest attached to lend out…

The FED’s estimate of currency in circulation is $700 Billion which is the true fractional reserve and the total debt supply in circulation is $33-$34 Trillion

3% of the money supply of the US is actual currency and 97% is debt created out of thin air with compound interest attached…The evidence for how fractional reserve banking works is right in front of your eyes if you know what to look for…

Current consumer income is composed mostly of previously created debt and future income is composed mostly of new debt creation…

Fractional reserve debt inflation is sustained by creating more new debt than previously created debt… on paper to maintain debt inflation new debt created out of thin air with compound interest attached must at least be equal to the previously created debt created out of thin air with compound interest attached…

But people are the consumers of debt so ultimately there is no way to perfectly run or distribute debt you poke prod and entice consumers to consume and at the end of the day you hope it is enough to maintain debt inflation…

In business operating expenses are composed mostly of previously created debt and profits are composed mostly of newly created debt…

Just in case it was over your head, Debt is created out of thin air with compound interest attached and makes up 97% of the money supply

Cash makes up 3% of the money supply and it’s purchasing power is destroyed by debt inflation…If you save “cash” dollars in a shoebox under your bed in a debt inflationary environment they become worth less over time…

Two factors which cause self sustaining debt inflation…

1. The only way to truly pay or service compound interest which is not created out of thin air but attached to created out of thin air debt is by creating enough new debt out of thin air with compound interest attached to pay or service the compound interest attached on the previously created out of thin air debt with compound interest attached…

2. Debt = money and if it is inflating then the debt/money supply is inflating which leads to price inflation which means that in order to afford to consume a product or service you must continually increase the amount of debt created to account for the rise in price which leads to even greater debt creation the next time and so on…

But is there a maximum potential for debt inflation in a debt backed by debt system…

Yes

Since current debt consumer income is previously created debt and is used as the basis for new debt creation which is future income then on paper once the maximum amount of current income is used to service the payment on the creation of future income no further future income can be created or future income creation becomes less than current income…

Present income is what future income becomes once it flows through the system and if the ability to create more future income is reached then present income which is the basis for future income creation has to shrink or cease to exist altogether…

The simplest sign that debt inflation is working is employment is rising or sustained and prices across the spectrum are rising…the simplest sign that debt inflation is not working is rising or sustained unemployment and prices of wants such as computers and autos are either not rising or dropping and commodities such as food, energy, and some metals are rising…

What are interest rates? Interest rates are profit derived from money or debt lent out whether it is actual cash or debt created out of thin air…

There really is not a problem with lending/renting out cash…But when you charge rent on something created out of thin air you are in fact manufacturing a product for consumer consumption…

The number 1 product manufactured in the USA for consumer consumption is debt and it’s main selling feature or sales gimmick is “It makes your dreams come true” better yet it is the key product which is needed to make “the American dream” a reality…

Since debt is a product interest rates are the cost of purchasing that product…the debt itself is your future income but the interest attached is the profit derived from it’s creation… the creation of the debt itself is wholesale the attachment of interest and the signing of the contract agreeing to pay it back plus the attached interest in a certain time span by the consumer is the retail operation…

When a consumer uses their current income to borrow future income they are in fact creating their future income into existence…

Since interest rates are the profit of the created out of thin air product called debt which is the key component in the realization of the American dream by the banks then the cost of the American dream to the consumer is interest rates…

Banks are just accountants who have the ability to lend or create the future income of the consumer who will then use that future income to service the rent/interest charge on their idea of what the American dream is currently for profit…

In order for banks to maintain a profit then the product called debt must keep inflating or volume must keep increasing…

In order to maintain product volume the cost of the product must also keep dropping…

In order for the debt inflation experienced for the past 23 years to be sustained the volume of debt must be maintained and that was done for the past 23 years by the systematic lowering of interest rates whenever volume appeared to be on the verge of dropping or was dropping…

But Banks and financial institutions are not non profit organizations the cost of production can not be more than the profit so frontline interest rates such as prime can only drop so low…once rates are as low as they can go and volume begins to dry up then the banks are forced to maintain profits by raising interest rates…

But that would cause a further drop in demand…and rates would have to be raised further…

Rates can not drop below zero and most rates can not go to zero and rising rates cause volume to dry up…

So the mechanics of debt inflation for the past 23 years of systematically lowering interest rates to maintain and expand debt volume to sustain profitability for the banks and maintain self sustaining debt inflation which is the primary fuel of economic growth is almost at an end… and will become apparent in a very short period of time…

If you can not lower interest rates or the price of a product to produce profit then you have to raise the price to maintain profits on lower volume…

But the product which currently exists is used as collateral for the creation of more product and if the volume drops then future volume will have to drop…

It is called a “recession” when the volume of debt creation slows to the point that debt inflation is not self sustaining and if the problem of declining volume is not solved then it is only a matter of time before the point of no return is reached where the debt deflationary forces are to great to overcome…

For the past 26 years interest rates have been systematically lowered to produce the required amount of self sustaining debt inflation needed to keep the banks solvent and the economy growing…Basically lower low and lower highs…

But 0 interest rates or as low as interest rates can go to produce a profit is the bottom line…If you produce a product and the profit eventually is reduced to zero to maintain volume and volume continues to dry up then the jig is up because if it costs more to produce a product than the return or profit from that product then the company will soon run out of resources to produce it…

Debt is a special product that consumers can not do without, since debt is money and the demand for money is without end, so if profit can not be maintained by volume then the price or interest rate has to rise…

The Facts of a debt backed by debt system

Debt makes up 97% of the money supply

Debt is created out of thin air by the banks with compound interest attached

Previously created out of thin air debt by the banks with compound interest attached is used as collateral for the creation of new debt created out of thin air with compound interest attached by the banks…

The only way to sustain debt inflation is with greater debt inflation.

The only way to increase debt inflation is by increasing volume and the only way to increase volume is by lowering the cost or interest rate to allow/create the conditions needed for more debt consumption. Then using the fulfillment of the American dream as a marketing tool to entice the maximum amount of consumers to request the banks create enough debt to satisfy the consumer demand…

Also finding more debt free victims to indebt can help...

Once the maximum amount of previously created debt is devoted to servicing the cost to maintain the creation of new debt then the maximum potential of debt inflation is reached and if the cost or interest rates can not be lowered to a point that allows the production of the required amount of debt inflation to cause a self sustaining chain reaction then there is no “current” way to maintain debt inflation…Debt inflation will falter and transform into unstoppable debt deflation…

Now a deeper look into the psychological bubble or the just think positive infinite inflation religion.

Basic marketing is used to convince the maximum amount of consumers that a given action is wrong and if you do it you are a loser but if you instead take our advice you will be doing what is right and will surely be hailed as a winner by your friends and family…

The weakest and simplest in society become the leaders of the pack and peer pressure soon causes even the mighty to fall for fear of being left out or left behind.

The “current” purpose of marketing is to convince people that think they are on the right path to begin following the wrong path… currently non stop mindless consumption is what is being marketed and the only way that can be accomplished is by massive consumer consumption of debt…

Second hand cars are for losers and lower forms of life… renters or previously constructed home owners are losers and lower forms of life… Only by buying the newest and biggest home can you even think of considering yourself a part of legitimate society…

Clothes without holes but out of date are not fit for an animal to lay on let alone for a member of society to wander around in public dressed in…

A 27 inch TV for family viewing is for welfare bums…

A computer under 2 Ghz is a total disgrace…

And so on and so forth…

The very act of saving has been reduced or transformed into consumption at a lower price then last week or raising the price by 10% and then saying it is for sale and seeing how many suckers can be fooled into thinking they are actually saving money...

For the marketing to be effective you need massive debt consumption or debt inflation and the just think positive infinite inflation religion to dispel any fear that it will ever come to an end…

If debt inflation ends then it is only a matter of time until the just think positive infinite inflation religion collapses… and if the just think positive infinite inflation religion collapses it is only a matter of time before debt inflation ends…

Or the thought of the good old days ending will end the good old days and if the good old days end the thought of the good old days will end…

The psychological bubble must be maintained at all costs or it doesn’t matter what monetary actions are taken to produce self sustaining debt inflation because the blind faith needed to reach inflationary goals will just not exist…

The truth is that the current system is almost finished and any consumer that signs on the dotted line to agree to service long term debt which is dependent on debt inflation will default and/or be wiped out…If the psychological bubble based on the just think positive infinite inflation religion were to pop consumers would stop signing on the dotted line and create a self fulfilling prophecy…

All the talk of unconventional measures and printing press tricks are just that…TALK to add strength or legitimacy to blind faith in the just think positive infinite inflation religion.

If the FED were to actually inform the public that the jig was up and that the floating exchange rate debt backed by debt fractional reserve system was in it’s terminal phase

The jig would be up…

If an asteroid big enough to wipe out civilization was discovered too late do you think they would come on TV and announce that the world as we know it was going to end next month? Don’t be so stupid. But we can see the end of the system so what has to be done? Well not a crash program to mount a 1 Gigaton bomb onto a rocket that is for sure…

The only way to stop the debt deflationary asteroid from impacting the financial system and economy is to hit it with a greater force of debt inflation… and for the past 26 years interest rates have been systematically cut on average of 83 basis points a year to provide the blast of liquidity or debt inflation to keep debt deflation at bay…

So in order to continue much farther financially and economically the United States of America must keep dropping interest rates on average around 83 basis points a year…

But here’s the problem…to drop interest rates past zero is impossible, any economist that has not recently suffered a shotgun lobotomy knows that it is impossible to maintain debt inflation or keep banks solvent with negative interest rates…There has never been a bank in the recorded history of banking which advertised negative rates…Banks are in the biz to make profit and 0 or negative rates = 0 or negative profits…

So the problem is “how do we drop rates past zero to support debt inflation” and the answer is “You can’t…it’s impossible”

Not quite…

There is a final system that could be used to solve that problem…

In a debt backed by debt system the only times that a printing press has to be used to print a dollar is…

1. When a previously printed dollar becomes warn out

or

2. If consumers demand/request more paper dollars than currently exists in a bank’s vault…

That’s it kids the Fed is not printing dollars sorry…It is a debt backed by debt system and the fed has an almost unlimited potential as the bankers bank or lender of last resort to create debt and lend it to commercial banks who in turn fractionally reserve it 34 to 1 and find enough consumers willing to sign on the dotted line to consume the newly created out of thin air $34…

The FED pumps debt into the system…asset and to a certain degree commodity price inflation is a result of debt inflation created by the FED and commercial banks at the request of the consumers for their consumption to live or at least service the cost of the inflationary American dream…

The FED is not printing money… sorry…”The Bernanke Printing press address” was aimed at a specific group of cowering simpletons who needed to be assured that the debt inflation that they are addicted to was never going to end and the thought of a printing press printing forever put their fears to rest…

The printing press trick has existed since paper and ink were combined to produce cash…

It is nothing new just the regulation method has changed from a specified amount of gold backing debt to a debt backing of debt…Both systems stop producing debt inflation if consumer demand for debt is not greater than the previously created debt but the gold backed system was limited by the supply of gold so the system had 2 maximum potentials either the US ran out of gold or it would run out of consumers able to sign on the dotted line in great enough numbers… when the US went off the gold standard in 71 it eliminated a roadblock or a potential limit to maximum debt inflation to allow debt to continue being inflated past the point where it ran out of gold…

There is an invention called the printing press alright and has existed since any of us were born it is nothing new and in fact the “Hyperinflationary system” which I alluded to before has been tried before…with predictable results…

In a gold backed system maximum debt inflation is pegged to the convertibility of debt for gold and also the ability for consumers to service greater amounts of new debt using previous debt creation as collateral…

In a debt backed system maximum debt inflation is pegged solely to the ability for consumers to service greater amounts of new debt using previous debt creation as collateral…

In a Hyperinflationary system maximum debt inflation is pegged to the printing press and an effective distribution method plus the computational abilities of the society…

All fractional reserve banking is inflationary or to be accurate “Inflate debt at all costs or die”

When the inflate debt at all costs or die basic mechanics reached the gold limit then the debt backing debt limit was introduced…when that limit is reached then a hyperdeflationary implosion will result or you can/could base debt inflation on the printing and effective distribution of non debt backed currency to buy more time…

Ultimately that is the purpose of maintaining debt inflation… to buy more time, more time for what? Who knows except the culprits…

How much time can a hyperinflationary system buy? On paper as long as the printing presses can keep printing or to be more accurate…as long as greater and greater amounts of non backed by debt “money” can be effectively distributed quicker and quicker to sustain debt inflation which leads to price inflation there is no real limit…except the human being consumer themselves…at the start of hyperinflation it is slow but the exponential nature of attaching the inflate debt at all costs or die debt backed by debt system to a non debt backed source as it’s limit for the maximum potential you then have effectively removed the limits to price inflation or interest rates…except the ability for human being consumers to compute or account for it… eventually the system hyperinflates to the point that it takes longer to figure out how much something costs then the price is rising…

How long does this process take? Not very long… maybe 2 years…

The bad aspect of instituting a hyperinflationary system is that the paper trail leads directly back to the culprits so it is not the perfect crime…Only if someone has a death wish do they actually choose to back a hyperinflationary system…

When the current system collapses the culprits will stay hidden because the cause of debt inflation is consumer consumption of debt and you will never be able to prove in a court of law that the FED or the Government or the Commercial banks forced consumers to consume debt… When the current system collapses the losers will get the blame… they always do… when you are bankrupted you are a loser and the winners don’t care if your excuse is because the maximum potential for debt inflation was reached so there is not enough new debt being created to allow my job to exist anymore…They will just laugh as they violently shake you by the ankles over a wheelbarrow.

If you think debt inflation can last forever then you had better be prepared to lose that bet…

Talk of printing presses and a rerun of the 1970’s inflation are the grasping at straws of desperate people in denial of the fact that blind faith in the just think positive inflation forever religion will not provide the justification for your actions or salvation from them…

You want to run with the herd? Then you risk running off the cliff to be harvested to sustain those higher in the economic food chain…

Those who are owed debt are the shakers and those who owe are the shakees.

In order to service debt, New debt inflation must be greater than or equal to previous debt inflation if it should stop or slow for any reason due to either the inability for consumers to borrow more or the refusal for consumers to borrow more…Debt will deflate and be unstoppable…

You can either play your part by leveraging yourself to the hilt or reducing or eliminating your debt consumption…the inability for interest rates to be lowered forever to produce unlimited debt inflation will be reached one way or the other and when that day arrives debt deflation will be totally unstoppable and the $34 trillion debt supply will begin to vaporize at a rapid rate…

If this is too scary to deal with…then just walk to the nearest T.V., turn it on and you will soon forget about such horrible concepts and be mesmerized to contented docile sleep yet again…and again and again forever and ever AMEN.

From the very millisecond that a Fractional Reserve Banking system is in operation the creation of new debt has to be greater than or equal to the compound interest charged... That is called Debt Inflation...

A fractional Reserve Banking System is basically insolvent from creation but does start out with a "base of reserves" but eventually the reserve ratio becomes smaller and smaller until it is ZERO...

As long as Debt inflation is greater than or equal to the compound Interest charged the system "works or functions"

You borrow $1000 at 5% interest for 1 year...

After a year you owe the banks $50 where does the 50 dollars come from? It has to be borrowed!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Or the money supply shrinks...

The US total debt is $32 Trillion, at Let’s say 5% interest/year that means that the US has to borrow (Create debt) $1.6 Trillion per year just to keep Debt inflation going or the system “working and functioning”

Compound Interest can never be paid off ever never it is impossible… and debt is just debt backed up by debt so it can never be paid off also it can be re-mortgaged at a lower interest rate but let’s say the interest rate is 0% then borrow $32 trillion dollars and what do you have? 32 trillion dollars… who will buy bonds that pay 0%?

Answer: nobody… How does Japan survive at 0.01%? They borrow a billion YEN then Buy US dollars and loan it in the US at 29% or just buying US securities that’s how, plus a whole bunch of other complex interconnections that I’m not going to get into because all that matters is Japan needs the US to inflate it’s debt to survive… for their system to “work or function”

Fractional reserve banking and civilization as we know it would collapse if the interest rate went to 0% the way it is structured plain and simple...

Now once you reach the maximum potential debt inflation meaning you have lent all you can lend and more people owe than don’t owe or…

Golden Fact #1 since 1971 the federal reserve using all the tools at its disposal has been pumping liquidity into the system to keep the economy of the world running by replacing gold as the world reserve currency with the US dollar which has basically lost 1000% of its value because of Debt inflation and the world is now maxed out… The world is now passed the maximum potential for Debt inflation and Debt deflation is how the system “works and functions” now…

How does Debt deflation work? In reverse… We are going backwards to 1971 because if the compound interest can not be paid you have to declare bankruptcy/default and write off the Debt… which causes the money supply to shrink and causes Taxes, commodities and necessities to rise and luxuries to drop…

Slight problem #3

Cars are a prime example of a luxury, yes we need cars but if a new car costs $10,000 to break even for the manufacturer and after everyone has bought their commodities and necessities and paid their taxes and can only borrow $9,000, and that’s if they need a car, then the car manufacturer has to cut production or employees or costs or borrow or go bankrupt… That just Adds to Debt deflation…

The Fractional reserve banking system of the world is Finished we are now in a death spiral that is about to become evident…

That is the magic of charging compound interest on debt backed up by debt as the money supply shrinks debt is defaulted on and written off and Unemployment will rise… and it will keep gaining speed until all the home equity is wiped out and banks start failing and martial law is imposed or “Financial doomsday” or the “US loses it’s shirt in the great fractional reserve banking Poker game”…

Marxism and capitalism, freedom, democracy, communism, don’t mean a thing if they depend on compound interest it is all slavery and blood money to the banks and no Elected representative or Dictator has the slightest clue that they are only administrators for the powers that be…

"Let me issue and control a nation's money and I care not who writes its laws." -Meyer Rothschild International Banker

Why is something not done to change the system?

Because the bankers are not in the habit of putting clubs in the hands of those that would destroy them… They control the education system, the Government, and the media…

People are just dummies… simpletons, lab rats, or lemmings engorged on easy money and addicted to Compound Interest…

I know how money works and “Christmas” is nothing but a rip off pure and simple. The general population believes that it is about joy and giving… But it is rape and pillage. The world is a sickening place… You know what Wall Street does with all the money it milks off of everyone? Invests it into the milking infrastructure of course. When the milking is over then the investment will stop and collapse is the result. The FEDERAL RESERVE and Friends have been doing this for 70 years. Milking milking milking.

Inflation? Deflation? They milk it all fools…

They are going to run out of victims soon… the pitched battle occurs at seasonal changes…

The next “season” is not summer and the FED is not Mother Nature…

Your own humanity is your failing because BANKERS do not possess humanity they have nothing but contempt for every human being on the planet and are in the business of taking more than they give. FIAT allows them to take it all and give nothing in return…

But don’t be fooled, Hypertiger scoffs at this latest attempt by the losers of the human race to fool me into thinking that they are winners. I know better.

Every day is one step closer to the end. Hey I know, next year they should just cut taxes on Wall Street and raise taxes on main street...

Tuesday, December 25, 2007

"A system of annuities in which the benefits pass to the surviving subscribers until only one is left.

The tontine is named after Lorenzo Tonti, a Neapolitan banker who started such a scheme in France in 1653, though it has been said that they were known in Italy earlier. Each subscriber paid a sum into the fund, and in return received dividends from the capital invested; as each person died his share was divided among all the others until only one was left, reaping all the benefits."

"The Buttonwood Agreement, which took place on May 17th, 1792, started the New York Stock & Exchange Board (now called the NYSE, which is short for New York Stock Exchange). This agreement was signed by twenty-four stock brokers outside of 68 Wall Street in New York under a buttonwood tree. The organization drafted its constitution on March 8th, 1817, and named itself the "New York Stock & Exchange Board". In 1863, this name was shortened to its modern form, "New York Stock Exchange". Membership on the NYSE has been held as a valuable property since 1868. These days, members must purchase existing seats, which are now limited to a total of 1,366."

"The brokers based the U.S. system upon existing European trading systems"

The Buttonwood agreement is one of the simplest contracts ever...The agreement stated that they would only trade securities among themselves, that they would adhere to set commissions and that they would not participate in auctions.

The Buttonwood agreement...

"We the subscribers, brokers for the purchase and sale of public stock do hereby solemnly promise and pledge ourselves to each other, that we will not buy or sell from this day on for any persons whatsoever any kind of public stock at a less rate than one-quarter percent commission on the specie value of, and that we will give preference to each other in our negotiations."

What were the first publicly traded securities in the U.S.?

$80 million in U.S. Government bonds that were issued in 1790 to refinance Revolutionary War debt.

What was the first listed company on the New York Stock Exchange?

Bank of New York, which was the first corporate stock traded under the Buttonwood tree in 1792, and the first listed company on the NYSE.

"Trading was carried out at the Tontine Coffee House in a call market, with the president reading out a list of stocks as brokers traded each in turn."

The Federal Reserve is a Branch of the Central Bank of England...The New York FED is the controlling bank of the 12 Federal Reserve banks in the FEDERAL RESERVE Central banking system in the USA...

There are 8000 individual commercial banks in the USA some of them are primary dealers...Of which 30% are members of the Federal reserve system...(Most of Those not in the system will be wiped out by the implosion)

The USA is the Inflationary engine of the global economic system. Set up in 1944 Bretton Woods as the Demand of the world

"The Federal Reserve Bank of New York is the most important of the twelve Federal Reserve Banks of the United States. It is located in New York City, with a secondary office in Buffalo, New York. It is responsible for the Second District of the Federal Reserve System, which encompasses New York state, the 12 northern counties of New Jersey, Fairfield County in Connecticut, Puerto Rico and the Virgin Islands"

"Since the founding of the Federal Reserve banking system, the Federal Reserve Bank of New York in Manhattan's Financial District has been where monetary policy in the United States is implemented, although policy is decided in Washington by the Board of Governors of the Federal Reserve System. The New York Fed is the largest, in terms of assets, and the most important of the twelve regional banks. Its first governor was Benjamin Strong Jr. who led it for 14 years, until his death in 1928. New York City is the financial capital of the United States, and the New York Fed is responsible for conducting open market operations -- the buying and selling of outstanding U.S. Treasury securities. Note that the responsibility for issuing new U.S. Treasury securities lies with the Bureau of the Public Debt. In 2003, Fedwire, the Federal Reserve's system for transferring balances between it and other banks, transferred $1.8 trillion a day in funds, of which about $1.1 trillion originated in the Second District. It transferred an additional $1.3 trillion a day in securities, of which $1.2 trillion originated in the Second District. (Thats a Qurdrillion or 1000 Trillion dollars a year in transactions, at 0.1% that 1 Trillion a year profit) The New York Fed is also responsible for carrying out exchange rate policy by buying (selling bonds) and selling (buying bonds) dollars at the direction of the Federal Reserve's Board of Governors. The New York Federal Reserve is the only regional bank with a permanent vote on the Federal Open Market Committee."

"The Federal Reserve Bank of New York maintains an underground vault in Manhattan. The largest gold repository in the world, larger even than Fort Knox, it is 80 feet (25 m) beneath the street and holds $90 billion worth of gold bullion (approx 5,000 tonnes at). The gold is owned by many foreign nations, central banks and official international organizations. The Federal Reserve Bank does not own the gold but serves as guardian of the precious metal"

"Primary dealers are banks or brokerage firms who may trade directly with the Federal Reserve System of the United States. They are required to make bids or offers when the Fed conducts open market operations, provide information to the Fed's open market trading desk, and to actively participate in U.S. Treasury securities auctions. They consult with both the U.S. Treasury and the Fed about funding the budget deficit and implementing monetary policy. Many former employees of primary dealers work at the Treasury, because of their expertise in the government debt markets, though the Fed avoids a similar revolving door policy."

"Between them, these dealers purchase the vast majority of the U.S. Treasury securities (T-bills, T-notes, and T-bonds) sold at auction, and resell them to the public. Their activities extend well beyond the Treasury market, for example, according to the Wall Street Journal Europe (2/9/06 p. 20), all of the top ten dealers in the foreign exchange market are also primary dealers, and between them account for almost 73% of forex trading volume. Arguably, this group's members are the most influential and powerful non-governmental institutions in world financial markets. Group membership changes slowly, with the current list available from the New York Fed"

The Primary dealers = the Bond market and the Stock markets.

It is the job of the Wall street floor specialists to make a market.

You all have money...They do not...they want it...and do what they have to to get it.

There is no money in the stock markets...The only money in the markets is what the top convinces the bottom to give them...

What the sellers sell to the buyers.

You could give a professional money manager your entire life savings to invest into the market...By buying stock...The seller takes your money and then blows it on lines of coke or imported hookers...and you get a piece of paper that says how rich or poor you are getting in return every month.

And when the bottom is sucked dry and can no longer sustain the top...the market collapses...

Because the top are the first to see that the bottom is sucked dry/played out and bail...

The top buys and sells...the bottom follows along and speculates.

It's what draws the zig zag lines...the bottoms are where the top buys to start the rally and the tops are where the top sells to extract the gains from all the chart followers.

It works great as long as there is a constantly inflating money supply and a large pool of gamblers.

But when consumers have reached their maximum potential to request commercial banks to maufacture more money than was previously manufactured...They are then forced to request the commercial banks to manufacture less money than was previously manufactured and the economy along with the markets implode...Like in 1929.

Like what is going to soon happen.

And it will take more than some planes flying into buildings to distract the bottom this time around.

Wednesday, December 19, 2007

The top obtains raw materials wholesale...then resells them to the bottom retail. It's a business...an enterprise. Like the merchant bankers of old...They obtain raw materials and products as cheap as possible then mark them up and sell them for as much as possible then lend out the profits from that operation...It's how the British East India company bascially took over the world.

It is very easy taking more power than you give. And how are you all going to stop yourselves from doing it?

Those who choose to take more power than they give become richer in power or powerful while those who choose to give more power than they take become poorer in power or powerless...Bacteria take more power than they give...Because of course bacteria are ignorant of what they are doing...They just consume and consume until there is nothing left to consume...Just like you all do...Because you are all ignorant.

There is no way to operate what you all generally call civilization any other way...

How is the top (employers) going to support the bottom (employees) when all the power the top (employers) has comes from the bottom (employees)? Those who choose to take more power than they give...Laugh...while those who choose to give more power than they take...cry

And I'm sick of hearing about communism...If you all don't like civilization...Then take it over and run it how you see fit...or quit. You all have been crying about it for 1000's of years.

Yes before all of you existed to bawl for your cake and to eat it too...your ancestors did.

How much gold or silver do you require to construct consumer products? That decides the price of gold and silver.

Sales are up Year over year...Does that mean more products were sold at the same prices as last year...The same amount of products were sold for a higher price...or Less products were sold for a higher price?

And in the markets GOLD and silver are traded...bought and sold.

In the Constitution a group known as "We the people" appears to have given the Government of the USA the power...

"To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures"

The FEDERAL RESERVE Banknote is an IOU of course backed by the US Dollar.

What then is a US Dollar...

Well in the 1792 coinage act the Dollar was defined as...

"Dollars or Units—each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenths parts of a grain of pure, or four hundred and sixteen grains of standard silver."

Then in 1900 the Dollar was officially changed by the GOLD standard act to. (prior to this the USA was since 1873 on the City of London/Bank of England Gold standard De facto...In 1900 the USA was on it De jure.)

"De jure (in Classical Latin de iure) is an expression that means "based on law", as contrasted with de facto, which means "in fact"."

"Be it enacted . ., That the dollar consisting of twenty-five and eight-tenths grains of gold nine-tenths fine, as established by section thirty-five hundred and eleven of the Revised Statutes of the United States, shall be the standard unit of value, and all forms of money issued or coined by the United States shall be maintained at a parity of value with this standard, and it shall be the duty of the Secretary of the Treasury to maintain such parity."

More recently the United States $1 Coin Act of 1997 changed it to:

"The Sacagawea dollar is the current United States dollar coin. This coin was first minted in 2000 and depicts the Shoshone woman Sacagawea, a member of the Lewis and Clark Expedition, carrying her son Jean Baptiste Charbonneau."

It is...

88.5% Copper6% Zinc3.5% Manganese2% Nickel

And again of course a group known as "We the People" gave the power..."To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures"...To the US Government on September 17, 1787

The Current US Government book value of GOLD or the official US Government regulated value is 42.2222 Dollars a Troy ounce.

And the US consumer is the backing for the US Dollar.

The US Government can regulate the value...But the US Government can't control the value. You can manipulate the Universe...You can't control the Universe.

Now the so called US Dollar is weak in relation to the so called British Pound stirling. If you want the so called US Dollar stronger then you have to cut the supply of them or increase the supply of so called British Pound stirling.

Currently US consumers are requesting the commercial banks to manufacture around 11 Billion new so called US Dollars a day...or around 1 Trillion new US dollars every 90 days...

The Current supply of so called US Dollars is 44 Trillion...In 2000 there was 25 Trillion and in 1944 around 398 Billion. Why are US consumers requesting more and more new US Dollars to be manufactured?

To sustain the delusional lifestyles of the wannbe rich and famous.

If you are in the USA...look out your window or turn on your TV...That is what is being sustained...

Now if you were to attempt to cut the supply to strengthen the US Dollar...Then all that you see would rapidly run out of monetary resources and begin imploding.

But if you allow the US dollar to continue to weaken...eventually it would implode...It would take greater and greater amounts of so called US dollars to sustain everything.

Eventually the implosion would become exponential...One second a cup of coffee costs 1 billion dollars and the next it costs 2 Billion dollars...eventually it becomes impossible to account for and the whole system implodes.

What is the required amount of inflation to postpone the inevitable implosion for as long as possible? Not too much and not too little but always greater than previous. Until it becomes impossible to obtain or sustain greater than previous inflation to postpone the implosion for as long as possible.

Then game over...Implosion time and the magnitude of the implosion is porportional to the length of the postponement of the implosion.

You lie to one person and they find out you lied to them and they could slap you.

You lie to everyone for decades and they find out and you could have millions and billions of people that hate you and want you wiped from the face of the Earth.

You all (Humanity) have an ability or the power to manipulate the Universe as you see fit....But you all (Humanity) have zero power to control the Universe as you see fit.

Friday, December 14, 2007

Absolute capitalism is the taking of more power than is given. Responsible capitalism is the sharing of power as equally as possible. It's an individual choice. You either choose to share power as equally as possible...or you don't.

Split 100 into 3 equally...you get 3 X 33.3333....> forever

It is easier to split it into 33 33 and 34.

It is easy to take more power than is given...The path of least resistance...It is hard to share power as equally as possible. Free will...Resists if not given a choice.

The path of least resistance is the easiest path to choose to follow...Lightning bolts and bacteria follow it by default....Since Lightning bolts and bacteria are ignorant by default...Human beings or so called sentient life has to choose to be ignorant...

Bacteria are absolute capitalists...They just take more and more power until they reach maximum potential and implode...

It is easier to choose to support or promote delusions than to accept or point out truth. How do you share power as equally as possible in an absolute capitalist system? You don't.

The top of the hierarchial food powered make work enterprise will suck power from the bottom to the top until the bottom is sucked dry and then the whole hierarchy will cannibalize itself and implode.

In a gold mining town...Gold is money...and when the mines run dry...The town becomes a ghost town. There are 1000's and 1000's of ghost towns, cities, civilizations coating the surface of the planet. Most of the cities of Europe are built where previous cities inflated, reached maximum potential inflation, and collapsed into rubble.

All that taking more power than is given can do is create a temporary prosperity.

You all are living at the tail end of the longest and greatest temporary prosperity in the 6000 years or so recorded history of the hiearchial food powered make work enterprise...The city state or what you all generally call civilization.

Almost everything that can be consumed is being consumed and turned into waste faster than it can be replenished. This thing you are all in that you call civilization is basically dependant upon cutting down trees faster than they regrow to sustain it.

You have two choices at this point. Continue cutting down trees faster than they regrow to sustain the civilization until you run out of trees and are forced to stop...and at that point your civilization will implode.

Or

Stop cutting down tress faster than they regrow...and at that point your civilization will implode.

The point of no return was passed long before any of you popped into existence within the current iteration of the absolute capitalist hierarchial food powered make work enterprise.

Free will...Resists if not given a choice. And you all will resist...

That is what the The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 is for.

The space in between the choice and the logical conclusion is filled with wonder but the same choice leads to the same logical conclusion.

The fate resisters...are the terrorists.

Those who choose to take more power than they give become richer in power or powerful while those who choose to give more power than they take become poorer in power or powerless. It's an ancient accounting irregularity.

The purpose of the Police and military is to protect the top from the bottom...To protect cause from consequence...

The easiest prey of the hunter gatherer is the farmer and the simplest operation is the protection scheme...

You are either with us or against us...

All money is decreed money...fiat...The top says this is money...Or else...period end of story....

You Farmer are on the Land owned by the LORD of the land and will pay tribute to the LORD of 1 Gold coin a year...

Where do I get this GOLD coin?

You can take one short ton of grain to the grainery of the LORD and there you will be given a GOLD coin for it and then you can give the gold coin to the servant of the LORD...

What if I refuse?

Then the LORD will drive you from the Land that the LORD is the LORD of...

There you go an abundant supply of free food to power your wildest hopes and dreams...Lies and delusions...

22 And The LORD said, Behold! The man has become as one of Us, to know good and evil. And now, lest he put forth his hand and also take from the Tree of Life, and eat, and live forever,23 The LORD sent him out of the garden of Eden to till the ground out of which he was taken.24 And the LORD drove the man out. And He lodged the cherubs at the east of the Garden of Eden, and the flaming sword whirling around to guard the way of the Tree of Life.

Well what is done with all that Food the tillers of the LORD's land give the LORD as Tribute? It powers the Absolute capitalist Hierarchial food powered make work enterprise...To it's logical conclusion. The city state...Or Civilization...The thing you all popped into existance within and are in now.

What takes place at the logical conclusion? A choice is made that leads to the other logical conclusion. Human beings have been choosing the same path over and over again for 1000's of years...The path of least resistance.

You either choose to share power as equally as possible...or you don't.

As Sgt Rock of Easy company says...Living is hard...It's dying that's easy.

I can choose to let the candles burn down to nothing or choose to blow them out prior to them burning down to nothing and there is nothing the candles can do to escape their fate...

The bottom keeps asking the top for more and more conpensation to polish the tops' shoes and the only place the top can get the money that the bottom wants is from the bottom. As soon as you all stop wanting more and more and more the top will not need to demand more and more from you all to satisfy you all.

Simple.

You all don't own anything...except your lives...You all rent everything else from the top...

An increase in demand anywhere within a system spreads out into the entire system...If 1 person in a global system demands one more penny in compensation/year then the demand on the other billions of people in the system increases by 1 penny a year...

Most people in the so called rich countries want to be millionaires or at least live mimimum contribution for maximum gain lifestyles in a post industrial consumer society based system...So that is quite the demand...

100's of millions x 1 million dollars of demand.

Where do you think all the employers get the money that they pay all their employees?

From the all employees spending their paychecks...

From the preamble...

"We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America. "

That is socialistic...Sorry.

All you have to do is show a whole bunch of footage of the USSR in action and then say...that kiddies...is socialism...and everyone that sees it is trained into anti socialists who basically demand anti socialism...Eventually everyone becomes a divided and conquered individual...

You all will eventually hack yourselves to pieces "debating" the proper procedure to put your clothes on in the morning...

You are basically powerless...

"You can lead a horse to water but all you can really do when you get there is DROWN HIM!"

Talk is cheap. Action is too expensive...Most of you have a Christain upbringing so killing is scary...You can burn for all eternity...That's a high price to pay. What does the top have to fear from pretenders that run and hide when they are caught pretending?

Iraq is what it looks like when the bottom revolts against the Government...When the Government does not have enough power to intimidate the population into obedience. Order gets bored and erupts into chaos and then when chaos has had enough it screams for order.

There is not going to be a new order until you all scream for it.

Beg for it.

And you will...Like all the other times before...You all are begging for chaos now...It's a certainty that once you have it the dream which is a delusion will shatter quickly and you all will beg for order. Because the top maintains their position by giving you all what you want.

A nice safe environment to delude each other...

What are you all doing here? Seeking support for or promoting your cherished delusions. That is obviously what is going on.

Save the speeches...I've heard them all over and over again by many other wannabe champions...

What are you up against? What is the most powerful enemy or threat you all will ever face? Look in a mirror for a clue...

Speak anything counter to the dogma being promoted by the shepards of the herd and get eliminated...simple.

They will get you sooner or later depending on when you speak up/identify yourself as a threat to the dogma being promoted that the shepards expect the herd to follow.

Go out in a blaze of glory at the start or pathetically groveling at the end...It makes no real difference.

Monday, December 10, 2007

The period from 1933-1945 was the bankruptcy reorganization of the Global economy...

The crown system was in a death spiral by 1930 and the Geneva Conventions took place between 1930-1933 to set up the rules to guide the bankruptcy reorganization of the Global system...The actions taken in 1933 were to prevent a depression from turning into a general breakdown of the system crisis...

Basically a collapse of technological civilization...In the Depression of 1890 people still rode on the backs of animals or had an animal pull them in a cart...You could bring two opposite sex animals together to produce another one and you could eat one to survive and they were fueled by grass...You can't eat a car.

The system is just a bunch of quick fixes piled on top of quick fixes to prevent Technological civilization from imploding and they have almost run out of quick fixes...

You can't hyperinflate out...It would buy time if time was needed but consumer requests from commercial banks are the source of debt inflation...All that matters in a debt backed by debt compounding interest system is that there is enough debt inflation to overpower debt deflation...

Think of debt inflation as a lie and truth as debt deflation...

Why have you ever borrowed money? Usually when you did not have the required amount that you needed...The truth is you don't have the money...But when you borrow it you do...So you have the money but ulitmately whether you actually borrow it or it is produced for you...it is not yours...So you don't have it...

The system is basically powering a lie against truth...

As long as you can feed the required amount of power into a lie to sustain the fight against truth the truth will not be revealed. The longer you have to power the lie the more power it requires until it requires infinite power...

Now prior to the point at which the lie requires infinite power it is the truth...Once it requires infinite power to sustain it, it requires the truth...which is revelation...The lie then self destructs because it is not the truth anymore...It is revealed as a lie.

That is why debt inflation is so important...as long as you can power debt inflation with enough power to overpower debt deflation then you are ok...Once the required amount of power to sustain debt inflation over debt deflation becomes infinite the system implodes...

It is why interest rates have been engineered lower and lower for the past 24 years...To sustain the required amount of debt inflation needed to overpower debt deflation...

The zero barrier is close...If it were possible to fix rates then they would have done that decades ago...Rates have to go down forever to sustain the required amount of debt inflation...Rates can't go down forever...

But if they are held debt inflation slows then stops and if they rise debt inflation slows quicker and stops quicker.

The banking system provides liquidity...You the consumer are responsible for remaining solvent. Once you are insolvent then you have no collateral to use as a basis for a request of liquidity.

If credit cards and cashout refinancing did not exist the system would have caved in long ago...since you can be insolvent but have access to liquidity...

The medium of exchange is power. Power to make things happen. Food is the ultimate power source...Remove food from the equation, cities turn into ruins and Kings into skeletons.

Federal Reserve Banknotes or their electronic equivalent are not a promise to deliver work. They are a food substitute...Food powers the food powered make work enterprise.

The medium of exchange is power.

Money is just a tool that allows the exchange of power to be easier to accomplish and account for.

"For households under 35, the saving rate has plunged to minus 16 percent, meaning young Americans are spending 16 percent more than they are earning."

Yay overunity has been discovered...For every Input of 100 units of power the output is 116 units of power...

The USA is generating 11 Billion units of power a day or 1 Trillion units of power every 90 days currently above unity.

In 1944 the USA started out with a total of 390 Billion units of dollar power and now 62 years later the total units of dollar power that has been produced is 43 Trillion units of dollar power. Eliminate food from the algorithm and it would have been impossible.

There are about 7.5 Million Americans producing food...The rest of the population of worker drones numbers around 142.5 Million who produce zero food. Meaning they consume 100% more food than they produce or they produce -100% of the food that powers the absolute capitalist hierarchial food powered make work enterprise.

They make up for this by producing money which is a a food substitute...

Food powers the food powered make work enterprise. The medium of exchange is power. Money is just a tool that allows the exchange of power to be easier to accomplish and account for.

It is far easier to request a commercial bank to manufacture money than to work for a living. If working for a living was easier then the commercial banks would cease to exist.

You don't even know what work is...Running to commercial banks and requesting them to manufacture money to escape having to work for a living is not work.

As I pointed out...11 Billion dollars a day and 1 Trillion dollars every 90 days of new money or debt to supply the required amount of power to the delusional lifestyles of the wannbe rich and famous to sustain the delusional lifestyles of the wannbe rich and famous.

Work? Most go to so called institutions of higher learning to escape having to work for a living.

Saturday, December 08, 2007

Deflation is infinite and indestructible...Inflation is finite and fragile...Deflation does not increase, decrease, has no beginning or end...Inflation increases, decreases, and has a beginning and an end...

To survive you must inflate by the required amount...

The man made "system" we depend upon for the inflation we need to survive is systemically flawed...

Supply and demand must be perpetually inflated by the required amount...The artifical construct known as "interest" dictates what the required amount is interest attached to the medium of exchange.

I use the compound equation because all interest compounds...The inputs perpetually grow larger and larger...

Until the required amount of inflation becomes infinite...The only way to perpetuate inflation past the infinite or maximum potential point is to produce greater than infinite inflation...which is impossible...

When a star finds itself in this position it implodes and if it has enough mass it turns into a black hole where not even the entire inflation contained in the Universe can escape from...

The system will also implode when it reaches the infinite point or maximum potential and has numerous times in the past...

The point at which it becomes impossible to have positive inputs or greater inputs then previous inputs in the above equation...

We are getting close to that point...very close.

When the system implodes it is only doing what it is designed to do...What is taking place is normal...

Every Oilman is sitting at the pinnacle of a debt inflationary empire...Which price charged for a barrel of oil produces more debt to fuel the empire?

$10 or $45? [or $90?]

There is only one thing an oilman fears...A drop in the price of oil...

All of you are also at the pinnacle of your own personal debt inflationary empires. Would you fear a drop in the dollar denominated value of your bank accounts?

What sort of actions do you take part in on a daily basis to prevent this from happening?

When all you speculators combined bid the price of oil up does not everyone else have to pay the tribute to their masters which happens to be the speculators who have positioned themselves at the pinnacle? At the top of the top sucking from the bottom debt inflationary pyramid?

Where does debt inflation come from? All those at the bottom who must request commercial banks to create debt out of thin air so they can continually pay the tribute to those at the pinnacle...

Those at the pinnacle reinvest the tribute they receive by lending it to the bottom so that the bottom can pay the next round of tribute...Because those at the top need their bank accounts to constantly inflate to support their debt inflationary empire the tribute must also inflate...so the bottom is forced to request commercial banks to create the difference out of thin air...

Of course the bottom has a finite ability to request the difference...

Like a horse and rider...Master and slave...

The horse has a finite ability to transport the rider...The slave has a finite ability to satisfy the wishes of the master...The horse slows down...the rider is in a hurry so he starts whipping the horse...The horse slows down to a stop...the rider dismounts and whips the horse until it drops dead...

Where is the fault? The Master always blames the slave...

When you fail to pay the tribute it is not because the master is taking too much it is because you are giving too little...

I think you are all just confused as to what you all are...That is slaves wailing when the whip cracks across your asses to motivate you to satisfy the master's wishes...

We are currently at the stage where the master has dismounted and is whipping the slaves...

Very soon they will drop dead in mass numbers.

The bums on the street are the horses that have been whipped into lameness...

The ones that die are done being whipped...

At the pinnacle the master has access to Atomic whips and Biological whips and Chemical whips...Death squad whips...mass media psychological whips...etc.

It is no wonder then why your wails of agony and the occasional cracking of your stage prop whip which the master gave you to begin with produces nothing significant...

Thursday, December 06, 2007

You just don't get it: THE US DEBT INFLATIONARY ENGINE powers the planet...

All those in India and China? You in the US pay them. They work for you...When the US goes down they have nothing to do.

You have no idea...It took 300 years to get to the end of the line there is no fix...There is no rewind button...The string of quick fixes piled on top of quick fixes on top of quick fixes is almost at an end...The back up Global economy is not going to kick in when the Global economy fails.

The plan? There is no plan. All the oil and raw materials that India and China consume are paid for with US dollars that you in the US give them when you cash out refi your houses and swipe your credit cards...

All the system can do is inflate to its maximum potential then implode...End of story...

Bernanke and the magical printing press? A fairy tale told to children to keep them from having nightmares...

The US is the beating heart of the global economic system...its connection to Europe is Germany...Its economy is dependent on the US...and it is fragile. But not as fragile as Japan which is a walking dead man...It is the primary US connection to Asia...

Japan's entire economy is so dependent on US debt inflation it's sick...It is basically bleeding to death and the only thing keeping it alive is US debt inflation transfusions...every day day in and day out for the past 15 years.

All three combined form the top of the system or 60% of the world GDP the other 190 nations on Earth make up the other 40%.

The US component of the Global system is twice as big as Japan which is twice as big as Germany...Germany is the largest economy in the Euro zone...

You are all in a trance...You have been hypnotized...

It's so game over it is hard to believe...The vast majority are oblivious...so oblivious that a new word would have to be created to label how oblivious everyone is.

People say, Hyper what is the solution?

IMPLOSION IS THE ONLY SOLUTION

You either attach interest or you don't...

Hyper I just blew this persons head off and it was a mistake what's the solution? Start digging a grave.

The world began to implode in 1930-1945 during the Bankruptcy reorganization of the world and since 1945 it has been inflate debt forever or die...and the system is still bankrupt and in mindboggling worse shape since then.

Economists? The product of a complete malinvestment in a disfunctional higher education system.

Most of the Fortune 500 are Enron accounting tricks, they will fold like houses of cards without massive debt inflation.

Compounding interest systems only get weaker the longer they operate.

I assure you behind the scenes they are all beginning to shit themselves. It must be crystal clear to a few of them by now that their ancestors screwed them so good it's unimaginable...

If it were possible to download what I know into your your heads you would flip out and commit suicide and at the very least crumple to the ground rocking back and forth sobbing why why why over and over again.

I started researching when I was 9 years old so I'm completely immune to the One world religion, the just think positive inflation forever religion...I knew the basic mechanics of fractional reserve banking when I was 17...It basically took 12 more years to identify interest attached to the medium of exchange flaw and the basic mechanics of the Compounding interest/Banking system.

That interest attached to the medium of exchange is the cause of fractional reserve banking.

What's the solution? The Rulers of the world will dictate the orders you are going to follow...And they won't be saying pretty please or investing much into a big Hollywood brainwash production because it will be pointless...

Just like Baghdad Bob as the whole system was caving in around him.

Sorry for laying it on thick but it is beyond your current ability to comprehend...

I see the shadow formimg at everyone's feet that they don't see...The Shadow of the hammer about to strike the anvil they are all standing on...Don't believe me?...It is a certainty you will at some point it is only a short matter of time...

Once mass realization caves in the just think positive inflation forever religion nothing can be done...It will be unstoppable...

What people fail to realize is that inflate debt or die in stage 1 of the compounding interest system works in reverse once you enter stage 2.

There are over 50 years of past sins to cleanse unfortunately...Or 70 if you go back to 1930 or 100 if you go back to the bottom in the 1890's or 311 if you go back to the beginning of the system. Where do you balance the books that have never been balanced?

The FED's target for debt inflation is not too much and not too little...In 89 rates were engineered from 10% to 3% to prevent (Postpone) implosion... or a 70% chop in 4 years

In 2001 rates were engineered from 6.5% to 1% to prevent (Postpone) implosion...or an 84% chop in a year and a half...

And the volume needed...at 10% if you need $1000 per month profit from the debt out on loan then you need consumers to request $120,000 to be created and serviced...at 1% you need consumers to request 1.2 Million to be created and serviced...at 0.1% like Japan you need consumers to request 12 Million to be created and serviced...

Japan's real estate market was wiped out over 10 years ago when it reached this position we are at.

US consumers are already basically maxed out now after 3 years of the lowest interest rates in the FEDs history...And the Largest debt inflationary engine which liquifies the planet is US real estate...[When] it goes it's game over.

A house is for the protection of a Family unit not a speculative get rich quick scheme or an ATM equity withdrawal machine.

Mortgage rates would have to drop below 4% which would equal a FED rate of .10% or so and again you need volume. Rates crashed in Japan in search of volume over 10 years ago and none was found to this day because rates need to drop below zero...If you produce a product for $10 and can only sell for $9 you are doomed.If the required amount of volume to liquify the system exists below the zero rate barrier you are doomed.

The FED provides liquidity at the request of consumers and to maintain/service liquidity volume is needed...No volume no miracle.

The top of the economic food chain has to eat...zero prime rate = zero prime rib...

In the system the top owns the bottom and if the top needs to eat it has to liquidate the bottom...In order for the bottom to eat it must liquidate the top...The TOP controls the Police and Military unfortunately.

So now we will see what the plan is. The Homeland Emergency Government in waiting and the U.S.A. P.A.T.R.I.O.T. LAW or Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism is a sign that the bottom won't be liquidating the top when the system implodes.

The effort is caused by the attachment of interest to the medium of exchange...It is a certainty that all the private property in the hands of the many will be concentrated from the hands of the many into the hands of the few...Then you all become renters...I guess none of you believe in private property or you'll conjure up some other sophistry to point the finger somewhere else.

All you are seeing is what the 300 year old compound interest system is systemically forced to do to survive. Once you become a part of this system you have no choice. If you think it is ok to allow interest to be attached to the medium of exchange then quit your mindless babble since you are only getting what you deserve.

What you see is what you get. You get the full meal deal it's all or nothing...No free lunch and no having your cake and eat it too. Ignorance of the truth is the root of all evil...You are all just as Ignorant as the masters you cry about.

The only difference between them and you is they are on top and you are on the bottom...You both think exactly the same...All your shit stinks. The all men are created equal is not a man made law it is a declaration of GOD's Truth which is infinte and indestructible...The Law of the Universe...

A King having more power then a peasant is just a man made law against GOD or the Truth...The only reason you idiots are crying is because you are not on top. You would function no different if you were on top of the compounding interest system.

Everything you have came at the expense of others who you don't give the slightest shit about, you have complete contempt for those below you just like your masters do for you. All you whiners just have a common selfish interest is all...

Just like when the price of gas goes up you all reguardless of Religion or political beliefs or whatever you believe all start crying in unison the higher it goes and you all are the cause of it rising and falling.

You all! top to bottom are the cause of what you deserve and you are going to get what you deserve and if you don't like what you get...too bad...

The nature of Genetically modified Corn means that Farmers must purchase corn seed every year since their crops are modified to be Sterile...Some MBAType thought it would be cool to do this because then farmers would be slaves to banks since they would be forced to borrow money to afford the seeds needed to plant crops...Then their pathetic arguments would be validated...

The "assets" are all debt inflated assets...Debt inflation in great enough amounts to overpower the underlying debt deflationary potential must be maintained to sustain the price of debt inflated assets... real estate and land are examples of debt inflated assets...

Beep beep beep news flash...

"We" have been inflating out for 50 years...

Debt inflation is the production of debt in great enough quantities to overpower the underlying debt deflationary potential...

There is no way to inflate out of the situation...

Inflating out is what we are doing and have been doing for 50 years...

I attempted to decode fedspeak...This is a fragment of a speech.

Remarks by Governor Ben S. BernankeBefore the Economics Roundtable, University of California, San Diego, La Jolla, California July 23, 2003 An Unwelcome Fall in Inflation?

My translation (in parentheses)...

This distinction between (debt) inflation that is positive yet too low and (debt) deflation is worth exploring for a moment (Yes lets explore the basic mechanics of a scenario that is, according to you remote). Although the Federal Reserve does not have an explicit numerical target range for measured (debt) inflation, FOMC behavior and rhetoric have suggested to many observers that the Committee does have an implicit preferred range for (debt) inflation ( We will never be caught eating macaroni dinners that’s for sure). Most relevant here, the bottom of that preferred range clearly seems to be a value greater than zero measured (debt) inflation (Really? I’m shocked), at least 1 percent per year or so. Both the apparent tendency of measured (debt) inflation to overstate the true rate of price increase, as suggested by a range of studies, and the need to provide some buffer against accidental (debt) deflation (No such thing) serve as rationales for aiming for positive ((as opposed to zero) measured (debt) inflation, both in the short run and in the long run. To the extent that one accepts the view that measured (debt) inflation should be kept some distance above zero (The system collapses at zero), a very low positive measured rate of (debt) inflation (say, 1/2 percent to 1 percent per year) is undesirable (Macaroni dinner time) and implies a need for highly accommodative monetary policy (The encouragement of massive debt creation and consumption), just as would be required for outright (debt) deflation. The language of the May 6 statement encompasses the risks of both very low (debt) inflation and (debt) deflation. I suspect that for the foreseeable future, of the two, the risk of very low but positive (debt) inflation is considerably the greater. That is, (debt) inflation in the range of 1/2 percent per year in the United States in the next couple of years, though relatively unlikely, is considerably more likely than (debt) deflation of 1/2 percent per year. (So spiraling towards doomsday is more likely to happen then doomsday all of a sudden showing up, whew I was worried there for a sec)

Having drawn a distinction between very low inflation (Which shows up before “outright” deflation) and deflation (which shows up after very low inflation), however, I must also point out that, in terms of their costs to the economy, no sharp discontinuity exists at the point that measured inflation changes from positive to negative values. Very low inflation and deflation pose qualitatively similar economic problems, though the magnitude of the associated costs can be expected to increase sharply as deflationary pressures intensify (Buddy did you slip up? We are headed for deflation you say?).

(Meanwhile back at the ranch)What are these costs? In practice, the potential harm of very (Unlikely and undesirable) low inflation or (Outright) deflation (remote) depends importantly on the economic environment in which it occurs. For example, deflation can be particularly harmful when the financial system is already fragile (Newsflash: US economy is fragile…fast fact #33.3: Fractional reserve systems grow weaker the longer they are in operation until they collapse), with household and corporate balance sheets in poor condition and with banks undercapitalized and heavily burdened with nonperforming loans. Under such circumstances, deflation or unexpectedly low inflation, by increasing the real burden of debts (The only way to fight debt deflation is with debt inflation), may exacerbate financial distress and cause further deterioration in the functioning of the financial markets. This process of "debt deflation" (a term coined (Pun) by the early twentieth-century American economist Irving Fisher) (Dang I thought I created it oh well) was important (No itwas the paramount cause) in the U.S. deflation and depression of the 1930s (Due to a drop in consumer debt consumption once the maximum potential was reached) and may have played an important role in the economic problems of contemporary Japan (Due to a drop in consumer debt consumption once the maximum potential was reached). Fortunately, financial conditions in the United States today are sound (like Japan before they began collapsing), not fragile (Like now in Japan after years of disintegration). Both households and firms have done excellent jobs during the past few years of restructuring and rationalizing their balance sheets (Like Japan did when they were sound). For example, households have taken advantage of low interest rates to refinance their mortgages (Like Japan did when they were sound), in the process both lowering their monthly house payments and using accumulated equity to pay off more expensive forms of consumer debt (Like Japan did when they were sound), such as credit card debt (Like Japan did when they were sound). Likewise, firms have lengthened the maturities of their debts (Like Japan did when they were sound), lowered their interest-to-earnings ratios (Like Japan did when they were sound), and improved their liquidity (Like Japan is constantly doing). Completing the picture, the U.S. banking system is highly profitable (By creating debt out of thin air and charging compound interest on it to be paid by consumers) and well-capitalized (The FED is lending the banks all they need to keep the books looking good and to facilitate massive consumer consumption of debt, like Japan) and has managed credit risk over the latest cycle exceptionally well (Getting more people signing on the dotted line then the people sent to their screaming doom). Thus, in my view, a (debt) deflation that was relatively limited in magnitude and duration would be unlikely to have serious adverse effects on the U.S. financial system (If it does begin to have a serious effect it is your fault or we will make up an excuse to cover our asses).

A second set of circumstances in which (debt) deflation or very low (debt) inflation may pose significant problems is potentially more relevant to the current U.S. economy. That situation is one in which aggregate demand (For debt) is insufficient to sustain strong growth (In further debt consumption), even when the short-term real interest rate is zero or negative (Consumers have consumed all the debt they can consume). Deflation (or very low inflation) poses a potential problem when aggregate demand (For debt) is insufficient because deflation places a lower limit on the real short-term interest rate that can be engineered by monetary policymakers (Can’t drop rates past zero to encourage an orgy of debt consumption). This limit is a consequence of the well-known zero-lower-bound constraint on nominal interest rates (Well known to everyone except 99.999999% of the general population). For example, if prices are falling at a rate of 1 percent per year, the short-term real interest rate cannot be reduced below 1 percent, since doing so would require setting the nominal interest rate below zero, which is impossible. (Likewise, the very low inflation rate of 1/2 percent would prevent setting the real interest rate lower than minus 1/2 percent.) Thus, in a situation of insufficient aggregate demand (For debt), deflation or very low inflation (Which we caused to happen in the first place) might prevent the Fed from achieving full employment (Massive layoffs on the way), at least by means of the Fed's traditional policy tool of changing the short-term nominal interest rate.

In the worst-case scenario, one might worry that the interaction of deflation, the short-term nominal interest rate, and aggregate demand could conceivably touch off a destabilizing dynamic (You think?). Suppose that initially short-term nominal interest rates were already near zero and prices were falling. If aggregate demand (for debt) was sufficiently low relative to potential supply (of items on fire sale), deflation might grow worse (Oh my god!), as economic slack led to more aggressive wage- and price-cutting (Slash and burn economics). Because the short-term nominal interest rate cannot be reduced further, worsening deflation would raise the real short-term interest rate, effectively tightening monetary policy (I want my mommy). The higher real interest rate might further reduce aggregate demand (For debt), exacerbating the deflation and continuing the downward spiral (No no no nooooooo). That, at least, is the theoretical possibility (Not a theory , it has happened 100’s of times before). Fortunately, in practice, even if the Fed's ability to influence aggregate demand (For debt) was weakened by the interaction of worsening (debt) deflation and the zero-bound constraint on nominal interest rates, other factors could serve to short-circuit any incipient downward spiral. First, even in the presence of deflation, aggregate demand can be raised by fiscal actions (We have your daughter and if you don’t leverage yourself to the hilt and spend like a drunken sailor we will kill her). Second, the link between excess capacity in the economy and increased deflation, essential to this story, is not hard and fast. For example, despite a decade of economic weakness in Japan, deflation there has remained relatively stable at less than 1 percent per year (As long as the US is "sound" Japan can survive on the debt inflation exported from the US to maintain life-support); it has not worsened over time (1% per year compounding sounds like worsening), as the "deflationary spiral" scenario would imply (Are we talking about Japan or the US?). Third, if inflation expectations remain well anchored (Blind faith in the just think positive religion is maintained), the real return expected by borrowers and lenders--equal to the nominal interest rate less expected inflation--need not rise even as inflation declines (Stock up on macaroni dinners). Finally, as I have discussed in earlier talks and will allude to again today, the Fed's tools for managing aggregate demand are not limited to control over the short-term nominal interest rate, but include other channels (C.N.B.C) as well.

In any case, I hope we can agree that a substantial fall in (debt) inflation at this stage has the potential to interfere with the ongoing U.S. recovery (From a substantial fall in debt inflation due to the first shockwave we have been fighting since 2000 when the New economy debt bubble we helped to create popped), and that in conceivable--though remote--circumstances, a serious (debt) deflation could do significant economic harm (To our reputations so we will have a cover story formulated soon, stay tuned). Thus, avoiding a further substantial fall in (debt) inflation should be a priority of monetary policy (Has been since 1913 but you have to break a few eggs to make an omelet) . To my mind, the central import of the May 6 statement is that the Fed stands ready and able to resist (Can’t prevent) further declines in (debt) inflation; and--if (debt) inflation does fall further--to ensure that the decline does not impede the recovery in output (Of greater amounts of debt) and employment. (32 weeks at 400,000 claims a week and the highest time to find a job since the record in the 80’s and it’s going to get worse…)"

There is only one outcome hyperdeflationary implosion of the debt supply...It is people like you that reject reality that is the cause of this situation.

You want to believe in fantasy...and so you shall...until of course the fantasy caves in...due to the fact it is a complete lie which reaches it's maximum potential to be sustained...You are just playing games or playing dumb...

All you need to know is the system is going to cave in...you want to be out of debt when that happens...and you should also be prepared to survive without an income for a year...then you will be in better shape then 100's of millions of other unfortunate victims who are going to be blindsided...